‘Substantialdelay’ for A5

He made the comments after Mr Justice Stephens said a fuller survey should have been carried out in the first place.

Finance Minister Sammy Wilson had already agreed with Chief Secretary to the Treasury Danny Alexander for the Executive to borrow up to £50 million less in the last financial year (ending March 31) against an equal increase in borrowing in 2014-15 when funding for the A5 Londonderry to Aughnacloy road was likely to be needed.

Referring to Justice Stephens’ decision following a legal challenge against the road, Mr Kennedy said: “I have considered the very complex legal and procedural matters at length upon receiving detailed legal advice. It is my intention to accept the ruling of Mr Justice Stephens and therefore I have decided not to appeal.

“The Judge took the view that a fuller assessment of the impact of the A5 proposals on the rivers Foyle and Finn Special Areas of Conservation (SAC) should have been carried out. I now intend to have a more comprehensive assessment conducted. When this is completed I will consider the matter further.”

He said it was important the outcomes of any new assessment are not pre-judged.

He was also unable to give a timeframe for completion of a new assessment thus throwing into doubt whether the road would be ready to proceed by 2014/15.

“I cannot provide any further detail at this time regarding timescales other than to say that there will be substantial delay,” he said.

“My officials will seek to engage with landowners to carefully work through the next steps in relation to land issues.

“I am conscious of the impact of delay to this significant roads project on our local construction industry and therefore I will engage with the Executive to see how finance may be best deployed this year to support local jobs,” he added.

“Given the delay, it is important that other schemes that may be in a position to be progressed ahead of the A5 are given full consideration by the Executive.

“Therefore I intend to bring forward an Executive paper detailing other options such as moving forward with procurement on other possible schemes,” he said.